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Nano-encapsulation in terms of nanotechnology is one of the wide ranged and rapid adopted technologies in food industry. Nanotechnology has modernized the whole food system from production to stored products for the improvement in quality and preservation of nutritional status. Nano-encapsulation is also known as promising technology to protect bioactive components and could be suitable for delivering such protected compounds to target biological systems. In this review, the recent literature highlights the formulation and fabrication of nano-encapsulation using the appropriate wall materials. Moreover, literature also focuses on different methods, which have been used for encapsulation purposes such as coacervation, inclusion complexation, nano-precipitation, emulsification, supercritical fluid technique, ultra-sonification and spray and freeze-drying. Furthermore, this review also discusses the advances in the applications of nano-encapsulation for phenolic compounds, antioxidants, natural food colorants, antimicrobial agents, essential oils, minerals, flavors and vitamins as nano-carriers in food systems. As reviewed in this study, nanotechnology have ability to improve the food properties either in sensory attributes, storage, target delivery, along with to enhance its nutrition and make it healthier. Nano-encapsulation has played a vital role in approaching the way of advancement of bioactive compounds including their therapeutic potential especially in allied fields, food, and pharmaceutical industry during last decades. [ABSTRACT FROM AUTHOR]